Tennessee child care center license: the DHS process from intake to continuous license

Center, group home or drop-in: which license fits

Tennessee’s child care law covers any “child care agency”: a place that cares for five or more children who are not related to the primary educator, for three or more hours a day.⁠¹ Within that, DHS sorts programs by size and pattern of care:

The center license is the one this guide covers. If you plan fewer than 13 children in a home, see the Tennessee family child care home guide.⁠¹ A drop-in center may add up to 6 evening and weekend hours a week, but no child may exceed 20 hours a week, snow days aside.⁠⁴ Drop-in centers follow their own section of the rule (1240-04-01-.23), and their director needs only a high school diploma and one year of experience.⁠¹

DHS says it licenses more than 2,000 centers caring for over 171,000 children a day.⁠⁴ Running an unlicensed program that should be licensed is a Class A misdemeanor under T.C.A. 71-3-505. DHS investigates suspected programs with unannounced visits and can ask chancery court for a restraining order.⁠³

Exemptions changed on July 1, 2025

Public Chapter 135, effective July 1, 2025, rewrote the exemption list. It added gym care on site where parents exercise (up to 2 hours a day), care during Tennessee professional sporting events, and “parent’s night out” events of no more than 14 days a year. YMCA school-age programs in good standing with the YMCA of the United States are now exempt automatically. Camps may run during all school breaks on the district calendar, and Parent’s Day Out may run 12 hours a week on any days.⁠³

Being exempt does not always mean doing nothing. Educational, Parent’s Day Out, recreational, camp, gym care, sporting event and casual care programs must register with DHS. Parent’s night out events, Boys and Girls Clubs, YMCA school-age programs and house-of-worship nurseries do not have to register.⁠³ If your plan is a full-day program for 13 or more children, none of these exemptions apply and you need the center license.

The ten DHS steps, in order

DHS publishes a ten-step pre-licensure sequence. Inspections come before the fee, and you have two walk-throughs before the provisional license.⁠²

1. Contact the Pre-Licensure Unit

   Email [email protected], which DHS prefers, or call 615-906-0517 as a backup.⁠²

2. Get instructions from a Program Specialist

   The specialist emails you the licensing steps and tells you how to set up a provider portal account.⁠²

3. Create an e-Licensing account and register for orientation

   The rule requires every licensed agency to register in the provider portal and to submit and update its records there.⁠²⁠¹

4. Attend the orientation/intake session

   Once DHS records your attendance, you can complete the pre-application screen.⁠²

5. Start Small Business Academy

   The DHS page lists it here, after orientation. The February 2026 rule lists Small Business Academy among the director’s training for the first 120 days, so ask your Program Specialist when to take it.⁠²⁠¹

6. Complete the application in e-Licensing

   See the next section for what DHS expects with it.⁠²

7. Measuring visit

   The Program Specialist measures your rooms for capacity and looks for obvious hazards. The specialist then requests the State Fire inspection, the environmental inspection and a Choose Safe Places review. You must get a clearance letter from local codes and zoning, and the specialist helps if you need a special use or occupancy permit.⁠²

8. Pay the fee

   DHS asks for the fee only after all inspections and clearance letters are in. If you meet the Establishment Grant requirements, the specialist submits your Intake/Grant Eligibility form at this point.⁠² Rule 1240-04-01 says the fee goes in with the application during the provisional license process, but neither the rule nor the DHS procedures page states an amount.⁠¹⁠² Ask your Program Specialist for the current fee and the payment options before you reach this step.

9. First walk-through visit

   by the Program Specialist.⁠²

10. Second walk-through

    The Program Specialist returns with two more DHS staff members (listed on the DHS page as “a LC and FS”). If you comply with all rules and your required documents and training are complete and recorded, the specialist recommends a provisional license and a Program Manager approves it.⁠²

Monitoring visits begin once the provisional license is issued.⁠²

What goes into the application

Rule 1240-04-01 says the application, fee and supporting documents are submitted during the provisional license process.⁠¹ The rule names these contents:

• Business organization. A written statement of who holds legal and administrative responsibility, plus copies of your filings with the Tennessee Secretary of State, Division of Business and Charitable Organizations.⁠¹
• Program description. The services and types of care, the ages you accept, your hours, your food service, and any plan to share outdoor equipment or space with children not enrolled. Later changes must be reported to DHS at least 10 calendar days in advance.⁠¹
• Proposed budget. It must show enough funding for start-up and ongoing costs of staffing, equipment and safe operation.⁠¹
• Insurance documentation. You keep the declarations pages on file (see the insurance section below).⁠¹
• Hours. Care between 6 p.m. and 6 a.m. on weekdays, or on weekends, counts as “non-traditional hours.” You can offer it only if your license carries a notation authorizing it.⁠¹

The license covers one address, one owner and legal business status, set hours, set ages, set services and a set capacity. It does not transfer to a new address or a new owner.⁠¹ If DHS has concerns about your facility or methods, it can issue a restricted license that limits one or more areas of operation.⁠¹

Director and staff qualifications

The center director

A center director must be at least 21 and meet one of these routes:⁠¹

• A degree from an accredited four-year college, or registered nurse licensure without a four-year degree, plus 1 year of full-time experience with children in a group setting.
• 36 hours of coursework, at least 30 of them in business management, child or youth development, early childhood education or a closely related field, or a Tennessee Early Childhood Administrator Credential, plus 2 years of full-time group experience.
• A high school diploma or equivalent, the Tennessee Early Childhood Training Alliance (TECTA) certificate for 30 clock hours of Administrator Orientation (or a DHS-recognized equivalent), plus 4 years of full-time experience with children in a group.
• Continuous employment as an on-site center director or child care agency owner as of the rules’ effective date.

The director must also be on site for at least 50% of the center’s monthly hours of operation; time away for leave, professional development or community engagement is accommodated.⁠¹

During pre-licensure, the director completes:⁠¹

• the agency orientation session;
• Licensing Rules and Regulations Training, which includes building and physical premises safety;
• Shaken Baby/Abusive Head Trauma/Child Maltreatment training before any contact with children;
• Pre-Service Training (“Before You Begin”); and
• SIDS training before contact with children, if the center will serve infants.

Within the first 120 days (the provisional period), the director adds:⁠¹

• 3 hours on the Tennessee Early Learning Developmental Standards (TN-ELDS);
• New Director Training;
• transportation training before any transporting;
• first aid and CPR, each within 90 days of employment;
• Small Business Academy; and
• personal safety training (one representative per agency).

After licensing, a center may run without an on-site director for no more than 60 days in total per licensing year. A qualified person must be in charge during that time.⁠¹

Everyone else

Before any contact with children, every new employee must have:⁠¹

• an orientation covering 14 listed topics, including safe sleep, food allergies, abuse reporting and the risks of cytomegalovirus (CMV) to women of childbearing age;
• Shaken Baby/Abusive Head Trauma/Child Maltreatment training; and
• DHS-recognized pre-service training.

All staff need first aid and CPR training within 90 days of hire.⁠¹ Before a substitute or practicum student has contact with children, the center must train them on its emergency preparedness plan, reporting of child abuse, neglect and maltreatment, and safe sleep practices, and a center substitute has an annual training minimum of 4 hours in health and safety.⁠¹ Training is recorded in the Tennessee Professional Archive of Learning (TNPAL), and each staff member needs a TNPAL profile.⁠¹ Each center must also adopt a drug testing policy for staff in direct contact with children, including testing on reasonable suspicion, and keep results for five years after someone leaves.⁠¹

Annual training hours (rule 1240-04-01-.06(6)(c)):⁠¹

• Director of a single-site center: at least 24 hours (6 in health and safety, 3 in pre-literacy and literacy), or credit in one academic course in a related field.
• Assistant director: at least 18 hours, including 4 in administration, management or supervision.
• Center educator: 12 hours, including 6 in health and safety and 3 in literacy.

Training on Adverse Childhood Experiences is due every five years. Up to 4 hours a year may come from teaching training sessions.⁠¹

Background checks

The following people need a fingerprint-based background check no more than 90 days before they have access to the center:⁠¹

• owners and operators;
• every employee, director and manager;
• substitutes counted in ratio who work more than 36 hours a year; and
• residents aged 15 or older.

Checks repeat at least every five years, and again after a staff member has been away from Tennessee child care work for more than 180 consecutive days. Nobody may work with children until DHS issues a Final Clearance Letter or a Conditional Letter, which allows work only under the supervision of a fully cleared person. DHS pays for one check per person per agency per year. You pay for rejected prints, repeat submissions within 30 days, and checks on people you have not selected for a position.⁠¹

Ratios and group sizes

Centers follow ratio and group size charts in rule 1240-04-01-.22. These are the single-age limits from Chart 1:⁠¹

Chart 2 sets limits for mixed-age groups, for example 1:5 with a group of 10 for 6 weeks to 30 months, and 1:11 with a group of 20 for ages 2½ to 5. Chart 3 allows wider combined groups only in the first and last hour and a half of the day.⁠¹

Rules on grouping:⁠¹

• Infants get their own space and are never grouped with children older than 30 months.
• Each group needs its own designated classroom and written lesson plans.
• When more than 12 children in first grade or above attend, they need a separate educator, group, space and program.
• A cook is not counted in ratio while preparing food or washing dishes.
• Once more than 12 children are on the premises, a second adult must be physically available.

Tennessee also allows a limited variance. Centers may exceed ratios and group sizes by up to 10%, rounded to the nearest whole number, on no more than three days a week. The variance never applies to infant and toddler groups and never allows you to exceed licensed capacity. DHS may require fire approval before you enroll extra children under it.⁠¹

Children under 6 weeks old may not be enrolled. Children may not be in care more than 12 hours in any 24 except in special circumstances. You must also move children of active-duty service members, and certain other military families, ahead of civilian families on your waiting list.⁠¹

Space, building and inspections

Capacity comes from square footage:⁠¹

• Classrooms: at least 30 square feet of usable indoor play space per child.
• Nap rooms: at least 30 square feet of floor space per child.
• Not counted: restrooms, halls, kitchens, offices and floor space taken up by cribs or large furniture.
• Shared rooms: a room may be split between groups by a barrier at least 4 feet high.
• Toilets and sinks: the number follows local ordinances, how close the plumbing is to classrooms, and the ages served.

DHS may set your capacity below the square-footage maximum if it decides that is needed for safety.⁠¹

Outdoor areas need 50 square feet of usable play space for each child using the area at one time. They must be fenced at least 4 feet high and closed to the public while children are present, unless DHS waives the fence.⁠¹ A center may not be in a building that would prevent outdoor play unless DHS grants an exception.⁠¹

No license is issued without an annual inspection by the State Fire Marshal’s Office (Department of Commerce and Insurance) or its designee, and by the General Environmental division of the Department of Health. A before- or after-school program in a school building can rely on the school’s fire inspection.⁠¹ You need DHS approval again before you relocate or occupy new, renovated or previously unlicensed space.⁠¹

Other building rules:⁠¹

• Rooms must stay between 68°F and 78°F, children may not be present if the temperature cannot be held in that range, and unvented fuel-burning heaters and portable heaters are banned.
• A private septic system needs approval from the Department of Environment and Conservation, Division of Ground Water Protection.
• Pools need fences and locked gates, and you need local health department approval before using a pool.
• Reptiles and amphibians may not be kept as pets.

You also need a written multi-hazard emergency plan, prepared with local emergency management. It must cover evacuation, relocation, shelter-in-place and lockdown, family reunification, continuity of operations, and children with disabilities or chronic conditions. Staff are trained on it every year.⁠¹

Insurance minimums

Rule 1240-04-01-.05(4) sets these minimums for centers and drop-in centers:⁠¹

A standard homeowner’s policy does not satisfy these minimums. Programs run directly by a self-insured state, county or city department are exempt. You keep the policy declarations pages on file for DHS review.⁠¹

After the provisional license: monitoring and keeping the license

The provisional license runs 120 days. DHS can extend it if you need more time to show you can stay in compliance.⁠¹ To move to a continuous license you need four in-person monitoring visits that satisfy DHS, and you must comply with all rules for your class of agency.⁠¹ Training completed during the provisional period counts toward your first year’s hours.⁠¹

The rule does not set a renewal cycle. Instead, a continuous license stays in force as long as you:⁠¹

• keep a good compliance history;
• pay all civil penalties and other money owed the state; and
• submit required documentation, including the annual inspections.

A continuous-license agency gets at least four monitoring visits a year, two announced and two unannounced, in random order. Programs that close for the summer get three quarterly visits plus one shortly before or after the closure.⁠⁵

At each unannounced visit, the licensing consultant reviews 11 “critical items”:⁠⁵

• medication administration;
• emergency preparedness;
• food allergies;
• safe sleep;
• transportation;
• infectious disease and immunization;
• building safety;
• shaken baby prevention;
• first aid and CPR;
• supervision; and
• background checks.

An uncorrected major high-risk violation triggers a follow-up visit within five days. An agency on a Safety Plan gets weekly unannounced visits until the plan is lifted.⁠⁵

If you take families who pay through the DHS Child Care Certificate Program (the state’s subsidy), expect at least one additional announced evaluation visit a year.⁠⁵ Subsidy and food-program records must be kept: payments received, attendance and food served.⁠¹

What changed recently

DHS amended rule 1240-04-01 again effective February 8, 2026, after the November 20, 2025 version, so make sure any copy you work from carries the February 2026 date. The changes include the 50% on-site director requirement, child maltreatment added to the abusive head trauma training, building safety added to the licensing rules training, and training for substitutes.⁠¹ Public Chapter 135 widened the license exemptions on July 1, 2025.⁠³

Sources

1. 1
   Tennessee Department of Human Services, Rule chapter 1240-04-01, Licensure Rules for Child Care Agencies (February 2026 revision, amendments effective February 8, 2026) Checked 12 Oct 2026 · Back to text ↑
2. 2
   Tennessee Department of Human Services, Procedures for Becoming a Licensed Child Care Agency Checked 12 Oct 2026 · Back to text ↑
3. 3
   Tennessee Department of Human Services, How to Become a Licensed Child Care Provider Checked 12 Oct 2026 · Back to text ↑
4. 4
   Tennessee Department of Human Services, Types of Regulated Child Care Checked 12 Oct 2026 · Back to text ↑
5. 5
   Tennessee Department of Human Services, Provider Monitoring and Inspections Checked 12 Oct 2026 · Back to text ↑

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